In May 2007 Enterprise Ireland (in conjunction with the Irish Software Association) gave a morning workshop on their investment process with the focus on making it clearer how it works. This is one of two presentations from the workshop which I have scanned in.

1. .-1--- >.-.
J::;-
QillffillJ'"
Investment
Services
Division.
An Overview.
lrish
Transforming Industry
2008-2010

2. eill[IiTff'"
Structure lnvestment
of Services (lSD)
Division
Transforming Industry
lrish 2008-2010
)

3. Focus of Work
dll["ilis'"
- Commercial Evaluation.
- Investment -
advisers undertake and
commercial diligence
due
negotiate
equityterms a parallel
in process Investment
for
Committee, andGroMhFund
R&D Committees.
- Equity.
- Investment
advisers manage Equity
the Portfolio all Equity
and
maintenance issues.
- Divestment -
Policy Long termaimto exitwhencompaniescan
standalone.
Transforminq Industrv
lrish 2008-2010

4. dllffillJ'"
- Growth Capital.
- Manage Seedand Venture programmes.
Capital
- Business Angelsinitiative Tax-based
& developments BES.
e.g.
. Sourcing domestic lnternational
& investors.
SustainingJobs Unit.
- Recently to jobsand provide
established sustain funding
fromthe
Stabilisation
Funo.
- EnterpriselrelandMission.
To accelerate development world-class companies
the of lrish
to achievestrongpositions globalmarkets,
in resulting
in increasednational regional
and prosperity.
Transforming Industry
lrish 2008-2010

5. :t--= ENTERPRISE
Q/ IRELAND
Process Equitylnvestments.
El Due Diligence for
Transforming Industry
trish 2008-201
0

6. 4_
'---a
ei ll["lTlJ'"
' Thereare two stagesin the El EquityInvestment
Process.
" StageOne: Pre-lnvestment
Commercial
Evaluation.
- StageTwo: Post-lnvestment
EquityMaintenance.
Transforming Industry
lrish 2008-2010

7. VrZ
dilfiillJ'"
" StageOne: Pre-lnvestment
Commercial
Evaluation.
- Two steps in the Commercial
Evaluationprocess.
- One:Review all Financial
of Information
submitted.
- Two:Review theCompany,
of Business
Model,
Management
StructureFunding,
, Industry.
Transforming Industry
lrish 2008-2010

8. ei Fl[iT[J'"
Step One: FinancialDue Diliqence.
- Request relevant
all financial - to
information include
Management
&
Audited
Accounts.
Review theAccounts allother
of and relevant
financial
information
submitted.
12 MonthProjected
Cash-flow
analysis.
-
SalesPipeline Current projected.
and
Fullreview the FDS(Financial Sheet).
of Data
Trans{orming Industry
lrish 2008-2010

9. eill[nT[J'"
list of additional
information
needed assessinvestment.
to
Cap TableFullydiluted and % shareholding class,shareholder,
(# , by
valuation basis).
and
-
Options ESOPdetails.
Funding (if
History therehavebeenother
rounds).
Detailedbreakdownof fundinq
fromPromoters.
PrivateInvestors
and
fundingtype proposed.
Directors
Loans
andSalarv
Breakdowns.
lrish
Transforming Industry
2008-2010

10. dtl[IillJ'"
StepTwo: Non Financial
DueDiliqence.
Examination the Business
of StrategyBusiness
/ Model.
Analysis Business andthemain
the plan drivers the business
of plan.
ldentify
whatarethe keyissues mayprevent Company
that the from
succeeding.
Review the Management promoters
of and expenence.
Review the Management
of structure Group
and structure.
Review the Technical
of Assessors
report.
Transforming Industry
lrish 2008-2010

11. -.-,.. t -_.--
- -:":1'==-
dli[IlT[J'"
Additional lnformation.
Details any lP licensing
of arrangements.
Review competition business
of and environment.
Following review requested
full of informationCommercial
a
Evaluation
Meeting organised thecompany.
is with
Undertake review theinformation thecompany, ascertain
a of with to
andrationalise assumptions sales,
all on projections
costs, and
finances.
Submission theCommercial
of Evaluation
report the Investment
to
Committee.
Transform;ng lndustry
lrish 2008-2010

12. 'V:4='--:----
ei ll[..illJ'"
StaqeTwo: Post-lnvestment
EquitvMaintenance.
FollowingInvestment
CommitteeApproval, lnvestment be
the will
assigned the El Equity
into Portfolio.
An Equity
Advisor the Equity
in Department be assigned
will to
manage investment.
the
The EquityDepartment issues
dealswithall equitymaintenance and
manages Equity
the Portfolio.
Transforminq Industrv
lrish 2008-2010

13. --'-'--.---r'
eill[..ilrJ'"
Typesof EquityMaintenance
events.
Newinvestments further
and funding
rounds.
Redemption Conversion El'sshares.
& of
TradeSales Joint
& Ventures.
Consent Share
to options ESOP
& plan's.
lssue's convertible notes.
of loan
Transforming Industry
lrish 2008-2010